Autoblog

Chrysler has unveiled a few plans for the future and, rather than using past successes to carve the path, will adapt its course according to the changing market. While speaking at the recent Western Automotive Journalists' dinner, Chrysler President Jim Press touched on the need to generate brand identity amongst Jeep, Dodge and Chrysler. While each brand currently has a core theme, Jeep – off-road, Dodge – volume and performance, Chrysler – affordable luxury, there have been many recent deviations, such as the conglomeration that is the Jeep Compass. Press hopes to put an end to that trend and focus the company's aim at the automotive enthusiast. Toyota can keep the automotive appliance title, Press wants Chrysler to appeal to drivers rather than consumers.

Nevertheless, actions speak louder than words and Press backs up his claims through the current curtailing of vehicle production and the scheduled release of seven new vehicles come 2010. Like other manufacturers, Chrysler is aggressively pursuing alternative powertrain configurations, particularly electric drive. In case no one has noticed yet, 2010 will be a big year for the American automotive industry. It will be the point when the roller coaster ride reaches its end and some folks end up with motion sickness while others get a rush of adrenaline. Hopefully Chrysler can find themselves in the latter category.

[Source: Car Tech]

Click above for high-res gallery of the Dodge Viper ACR

The Dodge Viper has been Chrysler's halo car since it was introduced back in 1992, but times are tough. Faced with the fact that it might not be able to continue making the brutish sports car, the Auburn Hills-based automaker is reportedly considering doing something that's never been done before by a domestic automaker (as for as we know): selling the Viper's future to a third party. Automotive News quotes Chrysler CEO Bob Nardelli saying, "We have been approached by third parties who are interested in exploring future possibilities for Viper." Nardelli claims that whatever happens, his company will work to make sure the best interests of Viper fanboys are served and that Chrysler would continue to offer "operational and financial" support for the car if a transaction takes place. We're honestly a little stunned that Chrysler would consider such a drastic action, though if it means the Viper won't be sacrificed at the altar of economic woes, we're all for it. On the other hand, how does one separate Dodge from the Viper? Can you imagine Ford selling the Mustang to ROUSH or GM selling the Corvette to Lingenfelter? Chrysler has not identified any of the Viper's suitors, so rather than a familiar tuning house, it could also be a conglomerate of investors or another automaker. Is a Viper sold by another brand still a Viper?


[Source: Automotive News, sub. req'd]

No matter how you slice it, a proposed $25 billion loan from the Feds is a bailout, and that's exactly what Detroit's Big Three automakers are after, according to a report by the Wall Street Journal.

Lobbyists for General Motors, Chrysler and Ford have met with White House officials, Rep. John Dingell and a smattering of Michigan Democrats to discuss the loan, with plans to unveil the proposal after Labor Day.

The plan includes lending $25 billion to automakers in its first year at an interest rate of 4.5 percent (about one-third of what the companies are currently paying), with the government having the option to defer any payment for up to five years.

Details are scarce, and naturally, GM, Ford and Chrysler reps aren't saying much, but if the automakers and the Feds are serious, expect more information to leak out before the proposal is officially announced.

[Source: WSJ, Photo by Tracy O | CC2.0]

A few months back, Chrysler threw a wrench in its employee vacation plans by mandating that all white collar workers take the last two weeks of July off. The move wasn't very popular due to the short notice provide, and didn't save much money, but team Pentastar has decided to do it again next year. This time, however, employees have 11 months to plan their trip to the Magic Kingdom or a fuel-saving staycation (sorry, we'll never use that term again).

Chrysler spokesperson Shawn Morgan says synchronized time off is good for helping the struggling automaker to become more efficient. The idea is that cutting down on randomly timed vacation will help projects to stay on course while also keeping different project teams from getting ahead of one another. Employees actually like the idea of getting a two week chunk of time off right in the middle of summer, provided that ample notice is given to them to plan accordingly. It also helps workers from worrying about work that is being done in their absence, helping to make the time off more enjoyable.

[Source: Detroit News]

After years of incremental improvement in customer satisfaction, a study from the University of Michigan shows that overall, Detroit automakers have declined versus their Japanese and German rivals. The study, which polls customers with six-month-old to three-year-old vehicles, shows that U.S. automakers have stalled in their quest to improve satisfaction. The problem? Rising gas prices have made truck and SUV customers very unhappy with their vehicles, which reflects negatively in the overall score.

The Chevrolet brand was hit hardest, with scores dropping 3.7% versus last year's score. The bow tie brand was ahead of only Dodge and Jeep. The news isn't all bad for General Motors, though, as truck and SUV-less Saturn posted the industry's largest gain of 4.9 points to get within one point of Toyota and Honda's score of 86. Buick and Cadillac also performed very well in the survey, with each GM brand scoring an 85. Ford was flat year over year, but the Blue Oval's score of 80 was two points lower than the industry average. Lincoln Mercury also saw a big 3.5% drop in satisfaction, but those Ford brands are still above the industry average score with an 83. Chrysler did very poorly overall, with all three brands scoring under the industry average.

While the Detroit automakers might take note of the unfavorable results, this survey isn't widely published like the ones from J.D. Power and Consumer Reports. Both Ford and GM are faring well in J.D. Power's recent studies, and both are also still showing improvement in Consumer Reports.

[Source: Detroit News]

Click above for high-res gallery of Chrysler's booth on Woodward Ave.

The Chrysler booth at the Woodward Dream Cruise is all about two things: muscle cars and Mopar. The Pentastar filled up the massive mall parking lot at 13 mile and Woodward with dozens of classic rides from the '60s, '70s, and today. Among the best examples of Motown Metal were old-school Chrysler 300s, a brilliant orange Dodge Charger equipped with the Super Bird wing, and quite a few vintage Challengers. For some reason the Nassau concept from the 2007 Detroit Auto Show keeps creeping up at all Chrysler events, and it made it's way to Woodward, too. Chrysler also had plenty of chances for Mopar fans to kick back and have some fun, including a massive slot car track, a rock climbing wall and Rock Band. Click on the gallery below to check out the pics in full resolution glory.

Click above to view a video of the Chrysler UConnect system.

Chrysler's wireless, in-car Internet system will be made available beginning on August 25th, with pricing set at $499 for the Uconnect equipment, a $50 installation at the dealer, a $35 initial activation charge and a service fee of $29 per month. The cost of the system might be bearable for business users, but everyday consumers may be content with their Edge or 3G-enabled smartphones for mobile web browsing and email.

Check out our original post on the UConnect system here and view a video demonstration of the system in action here.

[Source: InformationWeek]

In an effort to cut down on travel and energy costs, Chrysler is said to be in negotiations with the United Auto Workers Union to switch from five, eight-hour days down to four days with ten-hour shifts. We first heard this scheme mentioned as a possibility for the Jeep Factory in Toledo, Ohio, though it now appears as if all but the few plants turning in high amounts of overtime would be affected if the UAW agrees to allow Chrysler to make the scheduling change. As is typical with the new Cerberus-owned automaker, the Chrylser LLC isn't giving out any information on specific savings targets, though preliminary figures put the reduction at something close to -- but under -- $10 million a year. The new shifts are already underway at a Chrysler distribution center in Atlanta, Georgia.

[Source: Automotive News - sub. req'd]

Lending further credence to earlier rumors of platform sharing between Chrysler and Nissan, The Wall Street Journal reports that Chrysler is in talks to base its next mid-size sedan on the next-gen Altima platform. Chrysler's "Project D" focuses on finding or designing a suitable replacement for the current Sebring and Dodge Avenger, models which have fallen on their faces with consumers. Other rumors point to Fiat being the chosen platform-supplier. After all is said and done, Chrysler could have a line-up which consists of a small car from Chinese automaker Chery, another small car from Nissan, a mid-size sedan from Nissan and a line of full-size sedans, pickups and SUVs of its own design. While Chrysler's main goal is to become profitable once again, there is certainly some danger in becoming a re-brander of cars from other companies, especially in the hotly-contested mid-size sedan market.

[Source: The Wall Street Journal]

A quick look at July sales figures shows that Chrysler saw a massive 34% drop in its Daily Sales Rate vs. July 2007, but the bottom line could have looked worse. Chrysler's recent announcement that its financing arm would exit the leasing business by July 31 had lead to a rush of customers visiting local Chrysler, Dodge and Jeep dealerships. Some dealers sold four times as many vehicles as usual for the last couple days of the month, giving the stores some relief from an otherwise bleak July. Now dealers are worried that the increased sales volume could lead to a still more bleak August, since many customers pulled forward their purchase decision.

Some dealers are trying to find third-party banks willing to get in on the leasing game, but a tight credit market and massive losses at automaker credit arms have made leasing look very unattractive as lease price begin to rise. Chrysler is hoping a fresh round of incentives will help cushion the blow, as zero percent financing and plenty of cash on the hood is the order of the day for now. Chrysler historically leased about 20% of the vehicles it sold, so if a whole new round of juicier incentives doesn't entice customers to "Shop til you Drive", August may look even worse than July

[Source: Automotive News - subs. req'd, Photo by Justin Sullivan/Getty]